This post crosses between a new deal and lease end so I was not sure if I should post here or in the finance forum. Either way, hoping to get your smart opinions on the following.
Our 2019 VW Atlas SEL lease ends in December and we currently have $17K (not a typo) positive equity in the lease. We have a guaranteed cash offer from an Audi and a VW dealer so the lease transfer should be relatively seamless (no 3rd party buy out shenanigans).
The challenge is we want to get into an ID4. But, lease pricing is outrageous. I am typically a minimum drive off kind of guy so applying any amount down to a lease is totally foreign. But, we want to take advantage of the $17K in lease equity before used car prices reset.
With that, we received quotes from multiple dealers on an ID4 Pro S ($46K) MSRP that is ~$420/mo w/ taxes and $9K down. Yes, it’s hard for me to even type that amount down because it is so OUTRAGEOUS!
That said, there are 3 options as I see it:
Use $9K of our lease equity for that down payment to get into a new EV and pocket $7K.
Do nothing and continue to eye the ID4 market to see if lease prices reset - unlikely given tight supply and risks the market value for our Atlas reducing as supply improves
Trade in the Atlas now, pocket the $17K and look for other lease options (or an ID4 down the line).
We really like the ID4 and want a 100% pure EV SUV which limits our searches. A Model Y is possible but wouldn’t deliver until Jan and the leases on those are not much better.
Thoughts? Am I absolutely insane to apply $9K in positive lease equity to a new ID4 lease? The hardcore leaser in me says yes, this is such a stupid deal (and it is were it not for the “found” money in the lease equity). The other side of me says this is such a unique situation and you are netting $7K to get into a new car and in any other time, this would not happen.
Thank you all for your inputs and helping me think through this.
cash in on the equity and figure the new car out later, that is insane, only thing with more equity (excluding exotics/sports cars) that i’ve seen are LR/RRs and even then it rarely is in 5 figures
That’s right. The Audi or VW dealers are desperate for used cars and would happily take our lightly used Atlas with no strings (e.g. don’t need to buy a new car).
Early Model Y deliveries are possible if you can snag an existing inventory as soon as it is dropped. We have a discord where you get instant notifications for Tesla inventory drops and if you’re on it, there’s a good chance you’ll be able to get a Tesla in a matter of days. (We check Tesla APIs every 2-5 seconds for a new update and post it on discord).
As for recommendations, sell the Atlas and pocket the money. Separate the two transactions. Model Y purchase would be recommended vs leasing considering that they hold their values quite a bit. You could also pursue a sellout prior to term end but you cannot buy the Model Y at the end of lease term - Tesla prohibits that.
That’s the standard deal that I got in MA as well by ordering direct with VW. If I am able to cash in the 2.5k MA rebate as well, this will be a good deal for the 43 k mrsp mid level trim. My build date is Mar22
Closed end lease financing available for a new, unused 2021 ID.4 Pro, on approved credit to highly qualified customers by Volkswagen Credit through participating dealers. Monthly lease payment based on MSRP of $39,995 and destination charges less a $7,500 Lease Incentive and suggested dealer contribution resulting in a capitalized cost of $31,182.80. Excludes tax, title, license, options, and dealer fees. Amount due at signing includes first month’s payment, customer down payment of $2,501, and acquisition fee of $699. Monthly payments total $13,644. Your payment will vary based on final negotiated price. At lease end, lessee responsible for disposition fee of $395, $0.20/mile over 30,000 miles and excessive wear and use. Offer not valid in Puerto Rico
Exactly. I saw this offer as well but when you move to a Pro S and actually factor in tax, fees etc…it’s closer to the deal I was quoted.
I appreciate all of the input. As I thought, it is worth taking advantage of the lease equity now. While we can live without the Atlas for a bit, we do need a second car. So I am trying to avoid being in a pickle without a new car but may have to risk that to maximize our lease equity.
Pocket the equity for sure and then evaluate all your options independently.
Financing the ID4 or Y might make more sense than leasing due to the VW’s federal tax credit and the Tesla’s value retention.
The discord posted by @ilike2breakthngs seems to have been very helpful for people on the TMC forums to find and snag existing inventory as soon as it gets posted. And sometimes those people let go of their upcoming (previous order) delivery in exchange for the order fee. At least that’s what I’ve seen on the model 3 sub.
